Bill Text: IA HF24 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act increasing certain penalties for employers willfully misclassifying employees for unemployment compensation contribution purposes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-22 - Subcommittee reassigned: Upmeyer, Dolecheck and Hunter. H.J. 120. [HF24 Detail]

Download: Iowa-2019-HF24-Introduced.html
House File 24 - Introduced HOUSE FILE 24 BY HUNTER A BILL FOR An Act increasing certain penalties for employers willfully 1 misclassifying employees for unemployment compensation 2 contribution purposes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1425YH (1) 88 je/rn
H.F. 24 Section 1. Section 96.14, subsection 2, paragraph e, Code 1 2019, is amended to read as follows: 2 e. (1) If the department finds that any employer has 3 willfully failed to pay any contribution or part thereof when 4 required by this chapter and the rules of the department, 5 with intent to defraud the department, then such employer 6 shall in addition to such contribution or part thereof, pay 7 a contribution equal to fifty percent of the amount of such 8 contribution or part thereof, as the case may be. 9 (2) If the department finds that such a failure to pay by an 10 employer involves the misclassification of an employee’s wages 11 on a federal 1099 record, for any subsequent finding by the 12 department of such a failure to pay by that employer involving 13 the misclassification of an employee’s wages on a federal 1099 14 record, the additional contribution required by subparagraph 15 (1) shall instead equal one hundred percent of the amount the 16 employer failed to pay due to misclassification. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill provides that if the department of workforce 21 development finds that an employer willfully failed to pay any 22 contribution for state unemployment compensation with intent 23 to defraud the department, and that the failure to pay by the 24 employer involved the misclassification of an employee’s wages 25 on a federal 1099 record, for any subsequent finding by the 26 department of such a failure to pay by that employer involving 27 the misclassification of an employee’s wages on a federal 1099 28 record, the additional contribution penalty required by Code 29 section 96.14(2)(e) shall equal 100 percent of the amount the 30 employer failed to pay due to misclassification. Current law 31 provides that such an additional contribution penalty equals 50 32 percent of the amount the employer failed to pay. 33 -1- LSB 1425YH (1) 88 je/rn 1/ 1
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